In 2023, wealth management firms of every size used their “culture” as a selling point when they looked to attract new advisors to their platform. Culture can be difficult to define, but we all know it when we see it. And while a firm’s culture should be ingrained throughout the enterprise and therefore not easily degraded, we know that isn’t always true.
With all the recent changes, consolidation and aggregation in the wealth management space, if you are an advisor who no longer recognizes the culture of your current firm, and you are looking to make a change in the new year, you’re not alone.
Thanks to innovative technology and advanced practice management, the playing field among firms today is more level than ever before. And while some wealth management firms might offer greater transition packages, higher payouts or additional bells and whistles, a firm’s culture is often the deciding factor when it comes to an advisor choosing to make a move.
What Makes A Strong Culture?
A firm’s values may be hard to quantify. Plenty of firms post their value statement on their websites, but many don’t live up to it. Whether conscious or not, sometimes the reality on the ground has changed a firm so much that what’s written no longer resembles how advisors feel they are treated.
If your firm no longer gives you the ability to serve your clients the way you see fit, it might be time to search for a better option. The same is true if your firm has sacrificed personalized, high-touch advisor services in its rush to build scale and increase its bottom line. If your firm focuses more on its economics than investing in the resources and support needed to grow your business, you owe it to yourself and your clients to explore alternatives.
Additionally, let’s not forget that rampant acquisitions and roll-ups are creating uncertainty for advisors and their investors. This means a strong culture also equates to a more clearly defined future for the partnership as well as a succession plan that allows advisors to be good stewards for their clients and businesses.
If you believe your firm is no longer living up to the values you signed on for, you need to find one that does. There are plenty of choices out there, but finding your cultural fit takes some research. By asking the right questions and talking with both new and long-time affiliated advisors, you can get a good feel for a firm. You’ll want to know how accessible the top management is. Does the organization put the advisors’ needs ahead of its own? And are the advisors treated like true partners as opposed to just another rep code? The answers will give you a real sense of the cultural climate at a firm before you sign on.
Build A Culture Based On Values Not Just Value
It’s important to cultivate a family culture supported by a full-service institutional platform. Firms that are advisor-founded, advisor-led and advisor-focused have unique perspectives into what advisors want and need from a partner. Advisors want an immersive experience that enables them to differentiate themselves in the marketplace and retain their entrepreneurial autonomy. They want to be part of an infrastructure and service platform that reflects advisor-centric values.
Advisors need to have a seat at the table—a place where their opinions count and feedback is encouraged, valued and acted on. They should also have direct access to executive leadership, something that used to be more common in the industry than it is today. Everyone in the home office should be willing to roll up their sleeves to help advisors serve their clients with excellence.
Being advisor-owned and operated allows firms to focus on their role as a long-term partner for their advisors. They can invest their time, talent and resources to help advisors build lasting equity in their practices. They don’t have to manage their business to an arbitrary three- to five- year timeframe—a luxury many in the industry do not have.